Stock Price & Analysis

Based on the recent data and market analysis, YUMC stock shows positive momentum and strong buy signals. The company recently reported Q4 earnings with a 4% revenue growth and 35% increase in core operating profit, while also announcing a 50% dividend increase to $0.24 per share. Multiple analysts maintain a "Strong Buy" rating with price targets indicating 18-21% upside potential from current levels.

The stock is currently trading at $48.07, showing technical strength with RSI at 58.29 indicating moderate bullish momentum without being overbought. The company's aggressive expansion plans targeting 1,600-1,800 net new stores in 2025 and commitment to return $3 billion to shareholders through 2026 demonstrate strong growth potential and shareholder-friendly policies.

Based on recent analyst reports and financial data, here's the price prediction for YUMC stock in 2025:

YUMC stock is expected to reach $58.20 by end of 2025, representing an 18.1% upside from current price of $48.07, supported by strong analyst consensus and expansion plans. The company's aggressive growth strategy targeting 1,600-1,800 net new stores in 2025 and commitment to reach 20,000 stores by 2026 provides solid foundation for this target. Recent Q4 earnings beat and 50% dividend hike to $0.24 per share further strengthens bullish outlook.

The S1 support level for YUMC Stock is $44.93 ,The R1 resistant level for YUMC Stock is $49.52.

As of the end of day on 2025-02-14, the price of YUMC Stock was $49.16.

The target price for YUMC Stock according to analyst rating is 56.83, with the highest price target at 59.00 and the lowest at 54.30. Analysts have a Strong Buy rating on YUMC Stock overall.

The market cap of YUMC is $18.6B.

Based on the provided data, I'll analyze whether YUMC is overvalued through multiple valuation metrics and recent performance.

Valuation Analysis YUMC's current PE ratio of 20.62x (Q4 2024) appears reasonable compared to its historical range, showing a moderate increase from 19.92x in Q3 2024. The EV/EBITDA ratio of 10.04x suggests reasonable valuation for a company in the restaurant industry.

Growth and Profitability The company demonstrated solid performance with:

• System sales growth of 4% year-over-year
• Core operating profit growth of 35%
• Restaurant margin improvement of 160 basis points to 12.3%

Market Position and Expansion YUMC has opened 1,751 net new stores in 2024, reaching 16,395 stores total, with aggressive expansion plans targeting 1,600-1,800 new stores in 2025.

Analyst Consensus Wall Street maintains a Strong Buy rating with an average price target of $58.20, implying an 18.1% upside from current levels.

Conclusion At the current price of $48.07, YUMC is not overvalued considering its strong growth metrics, expansion plans, and operational improvements.

Yum China Holdings Inc is a China-based company mainly engaged in the provision of restaurant business. The Company operates its business through three segments. The Kentucky Fried Chicken (KFC) segment operates quick-service restaurant (QSR), mainly providing original recipe chicken and other chicken products, beef burgers, pork, seafood, rice dishes, congees, fresh vegetables, desserts, coffee, tea and other products. The Pizza Hut segment operates casual dining restaurant (CDR), which mainly offering multiple dayparts, including breakfast, lunch, afternoon tea and dinner. The products include various types of pizzas, steaks, pasta, rice dishes and other entrees, appetizers, beverages and desserts. The Other segment mainly operate offline stores and e-commerce business, including Taco Bell, Lavasa, Little Sheep, Huang Ji Huang, COFFii&JOY, East Dawning and other different brands. The Company operates its businesses in the domestic market.

Based on the available data and analyst insights, here's a price prediction for YUMC stock by 2030:

YUMC stock is projected to reach $75-80 by 2030, driven by the company's aggressive expansion plans to reach 20,000 stores by 2026 and strong growth momentum in the Chinese market. The company's recent 50% dividend increase and commitment to return $3 billion to shareholders through 2026 demonstrates financial strength and confidence in future growth.

The robust store expansion strategy targeting 1,600-1,800 net new stores in 2025 alone, combined with increasing franchise mix of 40-50% for KFC and 20-30% for Pizza Hut, suggests sustainable long-term growth potential in the Chinese market.

YUMC has a total of 155000 employees.